According to S&P Global Ratings, Indian banks are anticipated to witness robust credit growth, profitability, and asset quality in the current fiscal year, reflecting the country’s strong economic expansion. However, the sector may need to temper its loan growth as deposit growth lags behind, posing a challenge.In the Asia-Pacific 2Q 2024 Banking Update, S&P Global Ratings Director SSEA Nikita Anand highlighted expectations of a moderation in the sector’s credit growth to 14 per cent in FY25, down from 16 per cent in FY24, especially if retail deposit growth remains subdued.
S&P Global Ratings Forecasts Moderation in Indian Banks’ Loan Growth for FY25
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